Appeal details
Counselvise Citation
[2019] 112 COUNSELVISE.COM (IT) 2213 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 6 month(s) 18 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
28-11-2019
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2013-2014
Appeal Filed On
10-05-2018
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR REHMAN , HON'BLE ACCOUNTANT MEMBER IT A. NO. 3049 /MUM/201 8 (A.Y : 2 013 - 14) M/S. MAESTROS MEDILINE SYSTEMS LTD EL - 63, ITC INDUSTRIAL AREA ELECTRONIC ZONE , MAHAPE NAVI MUMBAI 400 710 PAN: AAACM4317P V. JOINT COMMISSIONER OF INCOME - TAX (TDS) RANGE 1(3) ROOM NO. 603, 6 TH FLOOR K.G. MITTAL HOSPITAL , CHARNI ROAD (W) MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GAURAV KABRA DEPARTMENT BY : JOTHILAKSHMI NAYAK DATE OF HEARING : 30.09.2019 DATE OF PRONOUNCEMENT : 2 8 . 11.2019 O R D E R PER C. N. PRASAD (JM) 1. THIS APPEAL IS FILED BY THE ASSESS EE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) - 59, MUMBAI [HEREINAFTER FOR SHORT 'LD. CIT(A)] DATED 08.02.2018 FOR THE A.Y . 2013 - 14 IN SUST AINING THE PENALTY LEVIED U/S. 271C OF THE ACT. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT ASSESSEE HAS NOT PAID ANY SALARY TO ITS EX. E MPLOYEE SHRI J. CHANDRAMOHAN AND HE 2 ITA.NO. 3049/MUM/2018 (A.Y:2013 - 14) M/S. MAESTROS MEDILINE SYSTEMS LTD HAS FILED A CRIMINAL COMPLAINT AND REFERR ING TO PAGE NO. 11 OF THE PAPER BOOK IT IS SUBMITTED THAT THE EX - EMPLOYEE HAD EVEN STATED IN HIS COMPLAINT THAT THE ASSESSEE HA S NOT PAID SALARY. LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT SINCE THERE WAS A DISPUTE WITH THE EX - E MPLOYEE SALARY WAS NOT PAID AND NO TDS WAS MADE. REFERRING TO PAGE NO. 21 OF THE PAPER BOOK THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT IN THE REPLY TO LEGAL NOTICE ISSUED BY SHRI J. CHANDRAMOHAN ASSESSEE HAD STATED THAT SHRI J. CHANDRAMOHAN HAS NOT PERFORMED HIS DUTIES FROM 01.01.2013, THEREFORE, ASSESSEE HAS NO LIABILITY TO PAY SALARY. HOWEVER, AS THE COLLEAGUES OF SHRI J. CHANDRAMOHAN PRESSURIZED THE ASSESSEE TO PAY THE SALARY P OST - DATED CHEQUES WERE ISSUED BY THE ASSESSEE . IT IS ALSO SUBMITTED THAT THE CHEQUES ISSUED WERE NOT CLEARED. IT IS ALSO SUBMITTED THAT THE ADDITIONAL EVIDENCES PRODUCED BY THE ASSESSEE BEFORE THE LD. CIT(A) HAVE NOT BEEN ADMITTED. HENCE THERE IS A REASONABLE CAUSE IN NOT DEDUCTING THE TDS AND REMITTING INTO GOVERNMENT ACCOUNT AND PENALTY BE DELETED. 3. ON THE OTHE R HAND, LD. DR STRONGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. REFERRING TO THE PAGE NO. 5 OF THE LD. CIT(A) ORDER IT IS SUBMITTED THAT ASSESSEE HAS NOT FILED TDS RETURN AT ALL. THEREFORE, IT WAS SUBMITTED THAT ASSESSING OFFICER RIGHTLY LEVIED PE NALTY U/S. 271C OF THE ACT. 3 ITA.NO. 3049/MUM/2018 (A.Y:2013 - 14) M/S. MAESTROS MEDILINE SYSTEMS LTD 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. BEFORE THE ASSESSING OFFICER ASSESSEE COULD NOT FURNISH ITS EXPLANATION IN SPITE OF SEVERA L OPPORTUNITIES. BEFORE THE LD. CIT(A) ASSESSEE FURN ISHED ADDITIONAL EVIDENCES WHICH THE LD. CIT(A) REJECTED ON THE GROUND THAT ASSESSEE HAS NOT COOPERATED WITH THE PROCEEDINGS BEFORE THE ASSESSING OFFICER, THOUGH SEVERAL OPPORTUNITIES WERE GIVEN. NOT APPRECIATING THE SUBM ISSIONS OF THE ASSESSEE AND REJECT ING THE ADDITIONAL EVIDENCES THE LD. CIT (A) CONFIRMED THE PENALTY U/S. 271C OF THE ACT. 5. ON A PERUSAL OF THE ENTIRE RECORD, WE ARE OF THE VIEW THAT ALL THE FACTS HAVE NOT COME ON RECORD AS THE ASSESSEE COULD NOT RESPOND TO THE NOTICES BEFORE THE ASSESSING OF FICER AND THE ADDITIONAL EVIDENCES WERE NOT ADMITTED BY THE LD. CIT(A). IN THE ABSENCE OF COMPLETE FACTS ON RECORD WE ARE UNABLE TO ADJUDICATE AS TO WHETHER THERE IS A REASONABLE CAUSE IN NOT DEDUCTING TDS AND REMITTING TO THE GOVERNMENT ACCOUNT. THUS, W E ARE OF THE VIEW THAT THE ISSUE SHOULD GO BACK TO THE FILE OF THE ASSESSING OFFICER AND THE ASSESSEE SHALL SUBMIT ALL THE EVIDENCES TO PROVE THAT THERE IS REASONABLE CAUSE FOR NON - DEDUCTION OF TDS AND REMITTING INTO THE GOVERNMENT ACCOUNT AND ASSESSING OF FICER SHALL PASS FRESH ORDER TAKING ALL THE FACTS INTO RECORD . THUS, WE RESTORE THIS ISSUE TO THE FILE OF THE 4 ITA.NO. 3049/MUM/2018 (A.Y:2013 - 14) M/S. MAESTROS MEDILINE SYSTEMS LTD ASSESSING OFFICER FOR PASSING SPEAKING ORDER AFTER OBTAINING ALL THE FACTS ON RECORD. ASSESSEE SHALL BE GIVEN ADEQU ATE OPPORTUNITY OF BEING HEAR D. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIST ICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THE 2 8 TH NOVEMBER , 201 9 SD/ - SD/ - ( S. RIFAUR REHMAN) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 2 8 / 11/2019 GIRIDHAR , S R. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM
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